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Starbucks has a seven-point zero tolerance standard: transparency, commitment to continuous improvement, child labor, forced labor, unpaid, physical/sexual abuse and sexual harassment, refusal to assess, which must be observed.
Details are as follows:
1. Transparency
Suppliers must publish the names, addresses, and ownership of all factories that will be used to manufacture Starbucks, including subcontractors.
The importance of transparency is that the procurement decisions are based primarily on factory transparency. Even if the supplier only violated a transparency principle, all efforts to implement other codes of conduct will be destroyed.
2. Commit to continuous improvement.
Starbucks hopes that suppliers will demonstrate the determination to continuous improvement and participate in the process of improvement.
4. Forced labor
Starbucks does not tolerate the use of any forced or involuntary labor by our suppliers, contractors or subcontractors. So what is forced labor? It is the use of punishment and other means to force workers to work involuntarily as forced labor. The forms that are easily identifiable are: mentoring labor, slave labor, prisoner labor, forced overtime; other forms that are more difficult to identify: contract labor, over-paying workers who have to borrow and cannot leave before paying off debts.
5. No pay
All workers, including trainees, must be paid no less than the statutory low wage standard. Suppliers must pay wages to workers on a regular basis.
6. Physical, sexual abuse, sexual harassment
Suppliers must not use, allow corporal punishment, or any other form of physical or mental coercion, including abusive and sexual harassment.
7. Refuse to evaluate
Suppliers must allow third parties approved by Starbucks or Starbucks itself to check their records, facilities and conduct employee interviews without prior notice. Starbucks requires suppliers to provide their business, policies, procedures and other relevant records to Starbucks and its designated third parties.
There are several options for Starbucks in case of non-compliance:
1. Choose a new supplier, and non-compliant suppliers will not get any Starbucks Starbucks business.
2. Buyers may choose to use the CAR procedure to correct non-compliance. The business will only be granted after the second on-site assessment confirms that the corrective action required has been successfully implemented.
For non-execution of social responsibility: existing suppliers do not perform social responsibility and must accept behavioral correction requirements.
